German Factory Output at 27-Month High on Employment ‘Tailwinds’

Germany’s manufacturing output reached the highest level since early 2014 in a survey of purchasing managers this month as the economy was supported by a strong labor market and increasing demand.

A measure of production rose to 56.8 in July -- a 27-month high -- from 55.7 in the previous month, Markit Economics said on Friday. A combined index of manufacturing and services activity also rose to the highest this year. It was at 55.3 in July after a reading of 54.4 in June, the London-based company said on Thursday. Economists had forecast a drop to 53.6.